Financial Statements Audit In hospitals in India, three key Financial Statements Audit are audited: ◘ Income Statement: Also known as the Profit and Loss (P&L) statement, this Financial Statements Audit provides a summary of the hospital’s revenues, expenses, and profits or losses over a specific period. It offers insights into the hospital’s financial performance,… Read More »
NetWorth V/s LiquidCapital NetWorth v/s LiquidCapital are both financial terms used to assess an individual’s or organization’s financial position, but they represent different aspects of financial resources. Here’s a comparison between the two: Net Worth: Net worth refers to the total value of an individual’s or organization’s assets minus its liabilities. It provides a snapshot… Read More »
Preparing financial statements Preparing financial statements: The objectives of preparing financial statements are as follows: 1. Providing Information: Financial statements aim to provide relevant and reliable information about the financial performance, position, and cash flows of an entity. They offer insights into the organization’s financial activities, enabling stakeholders to make informed decisions. 2.Assessing Performance: Financial… Read More »
Qualifies as Liquid Net Worth Qualifies as Liquid Net Worth, Liquid net worth is the term used to describe the part of someone’s or an organization’s total net worth that comprises assets which can be easily convert into cash without experiencing substantial depreciation in value or time delay. The specific assets that qualify as… Read More »
Are Certificates of Deposit (CDs) Liquid Assets When managing personal finances, understanding what constitutes a liquid asset is essential. Liquid assets are assets that can be swiftly and effortlessly converted into cash without a loss in value. Common examples include cash, checking accounts, and some types of investments. But where do Certificates of Deposit… Read More »
Net Worth Liquid Net Worth Liquid does not consider liquidity. It represents the difference between a person’s or entity’s assets and liabilities. It is a measure of wealth, reflecting the value of the individual’s or entity’s assets after subtracting their debts or liabilities. While net worth indicates the value of one’s overall financial position,… Read More »
Can Liquid Net Worth be Higher Than Net Worth Understanding the concepts of net worth and liquid net worth is essential for effective financial management. But one question often arises: Can liquid net worth be higher than total net worth? Let’s break this down. Defining Net Worth and Liquid Net Worth Net Worth is the… Read More »
Types of Reserves There are typically two types of reserves that can appear on a corporate balance sheet: revenue reserves and capital reserves. Revenue reserves are create from profits earn by the company and not distributed as dividends to shareholders. These reserves can be used for a variety of purposes, such as reinvesting in… Read More »
Capital structure Capital structure refers to the composition of a company’s sources of funds, including debt, equity, and other forms of financing. It represents the way a company finances its operations, growth, and investments. The way a company finances its operations, known as its capital, is crucial as it affects the company’s financial performance, level… Read More »
Accounts Receivable Current Asset Accounts Receivable Current Asset, Yes, it is generally classify as a current asset on a company’s balance sheet. This is because account receivable represent amounts owed to the company by its customers for goods or services that have already been deliver or provide, but for which payment has not yet… Read More »
